FSE Listings: How to list your firm on the Frankfurt Stock Exchange for the greatest success for your Frankfurt Listings
FSE Listings: How to list your firm on the Frankfurt Stock Exchange for the greatest success for your Frankfurt Listings
With stock market experience going back as far as the 1980’s, our management team have seen their fair share of success stories and disasters in financial markets. My mother once told me, if you don’t have something good to say, don’t say it at all. However, the recipes for disaster have usually been associated to individuals and companies looking to go public with fse listings now but are not prepared. Preparation is more than just documentation, it is knowing what you want to give up, and what you don’t want to, and understanding the cost of money and decisions now and in the future. Sounds pretty general, but let me get really specific:
- Don’t give equity in your firm to individuals who claim they will list your firm with bridge capital, make it debt not equity. If you allow equity to a listing firm, its for selling, and this can push your stock price below the value to enable you to raise capital. So the hint here, is accept debt, but not equity.
- Do not go into Equity Lines of Credit that promise to give you money after listing. After listing is the most illiquid moment in time for any public company, if you need money, Equity Lines are not the way to go. If you just listed, again, you want to leverage your stock for debt instruments as collateral that does not get sold. Many of these so called “Equity Lines” or “Special Options” are based on VWAP, volume weighted average pricing based on the lowest bid. In addition, they get your stock to sell, averaging out 40-70% commission for them when hitting the bid of your firm. Some say they will give you a floor, but that’s a trick. Because a floor means they don’t have to pay you once they hit the floor, so no money. The whole exercise again is about you giving away equity that hurts your market. Equity Lines of Credit kill your business and market. Don’t do equity lines of credit, they are another example of giving away equity in early companies. If you have a company trading in excess of 100,000 shares a day, possibly it could work for your firm, but don’t sign anything until you have a market or you will crush your firm in the wrong hands.
- Do not give out a block of shares to persons who promise to raise money and do stock promotions. This is an oxymoron. Stock promotions generally increase the float of your market and put pressure on the stock of the company. Most of these going public, merger law, types actually over charge for listing costs which is between 60-75k, without ever completing their services as a promoter. In the finance world it’s the sour thumb approach, or pain in the back we call it, where they have taken 5% or more of your firm without producing much more than the listing, with no pressure to complete the raise of funds, and in essence these culprits leak shares into your market making it weak and volatile until you simply make them an offer to buy them out, or continue to suffer into failure. Most of these are bridge capital offers, and place you in an unfair position of pushing uphill your own stock and capital markets as a group so they can make a profit for very little and cause the downhill capital pressure.
The best way to list your firm on the Frankfurt Stock Exchange
You are probably asking yourself, what do I do now that FSE Listings Inc has told us, don’t use firms who offer bridge capital for equity (contact me if you don’t understand why yet at info@fselistings.com), don’t give away free stock to promoters, don’t use equity lines of credit on new or unlisted firms, don’t give blocks of shares away unless you are getting paid, try your best not to “Give Up Equity” in the beginning of starting your firm, and try to restrict current shareholders until 6-12 months after listing if at all possible.
I am glad you asked, because it’s going to seem so easy, you will wonder why everyone doesn’t list with FSE Listings Inc. when the entire market knows what the competition does to unsuspecting entrepreneurs like yourself.
- Build a corporate structure that has the right articles to protect the control of your firm, gives the leverage to issue ordinary shares, restricted shares, preferred shares, bonds, etc.
- Pay the costs of listing or borrow the funds as debt, but do not give up any equity to anyone unless its capital in the Bank. There is a cost to money, if your firm is going to be a 50 million euro firm, 5% is 2.5 million euro… and there needs to be that much buying to keep a stable stock price. So… borrow the money, don’t give away bits of your firm unless it’s for 2.5 million euro in cash.
- Put together with Deutsche Capital Partners AG a series of stock options for example par value of 0.10, 0.20, etc. Have them prepared for the purpose of raising capital for the company, and have them approved by the Board.
- Complete an IM or Prospectus if you would like to use the Options method
- Fill-in the Deutsche Capital Partners Client Questions, supply the business plan, and financials to qualify for corporate bonds to raise capital. (No prospectus required for the Bonds which are 125k euro per unit.) Bonds are debt versus equity! Keep control of your firm.
- Utilize the Frankfurt Stock Exchange Listings recommended market maker for ensuring that your market has awareness and daily trading volume in Units to ensure it meets the market requirements.
- Possibly look at different classes of shares, such as 12-24 month restrictions for start up firms, for current and future shareholders to avoid “emotion” driving your initial market listing pricing and corporate valuation
- Launch the FSE Listings Inc lead generation and investor relations program if you are raising capital based on the IM
- Launch the Private Growth Share Vision report and promotions, Roadshows, and institutional financing campaign for the Bonds
- Utilize the Bond financing to make further acquisitions and grow your firm, all available because you have built a Frankfurt Listing with FSE Listings Inc.
If you follow our advice and work closely with FSE Listings Inc and its consortium to deliver the services above, your firm should be able to raise anywhere from 1-300 million euro, maintain control of your firm and the public listing, not have to worry about people selling Frankfurt listed shares they received for services into your healthy vibrant trading public company, but rather paying back bonds and funds to have complete control of your firm when you go public successfully. Become a public company success story on the Frankfurt Stock Exchange.
I would advise listing with FSE Listings Inc by contacting the listings specialist Robert Russell, Russell@fselistings.com.